tv Bloomberg Daybreak Asia Bloomberg April 23, 2020 7:00pm-9:01pm EDT
7:00 pm
transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting down to asia's major market open. our top stories this hour, asian markets face an uncertain action leadingports that a coronavirus drug has tested poorly. oil maintains it's a slow recovery after a wild week.
7:01 pm
traders are concerned about the swelling global glut and the lack of storage. the skies are darkening over japan as the coronavirus bomb the dimmest view on the economy for a decade. we have that this hour. shery: breaking news at the moment. we are hearing from treasury secretary mnuchin saying the u.s. has no current plans to create a federal reserve facility to inject funding into non-bank or gauge servicers. this of course as we have seen recent government moves to help the firm's get through the risk of borrowers missing their mortgage payments. again, treasury secretary mnuchin saying he has no plans for lifeline. let's now bring in our congressional government reporter, emily wilkins, on the line for more on what we heard from president trump as well as vice president pence on the latest efforts when it comes to
7:02 pm
handling the impact of the coronavirus pandemic. emily, so secretary mnuchin saying that he has no plans for mortgage servicer lifeline. he says the steps are taken by agencies have eased liquidity concerns. what else are we seeing in terms of government action in order to try to mitigate the impact of this pandemic? emily: absolutely. one of the biggest stories coming out of washington, d.c. today is over in congress where the house passed a 480 $4 billion coronavirus aid package. a lot of that includes funding to help out small businesses. remember, the funding for a lot of them ran out about a week ago . lawmakers have been under immense pressure to come up with more funding. it includes funding for hospitals, for vaccines. that is a big thing that is passed congress. it should go to the president's
7:03 pm
desk to be signed. congress is starting to work on another bill. there is a lot of pain going on in the economy at the business and individual level and seeking to address that. we are already looking ahead to subsequent bills. what more assistance and aid do we expect in these packages that are already being discussed? emily: one big debate going on in d.c. right now is how much should be given to states and localities. we saw several republicans, including mitch mcconnell in the senate, coming out and saying not able toes are continue funding, they might have to declare bankruptcy, something a number of governors have pushed back against, saying they need help from the federal government at this point as well so that is a debate to keep our eye on going forward. there are other things to see,
7:04 pm
whether we are going to see policy on how elections will run in november, whether we are going to see another round of stimulus checks. that willall debates be had. we had the last package passed in the trillions of dollars. i think a lot of lawmakers are seeing this upcoming package as the potential to perhaps get some of their most important items into. thank you so much for coming on with us. emily wilkins, our congressional government reporter. that's give you a look at what kind of session we are setting up in asia on this friday. sophie kamaruddin is in hong kong. pretty mixed outlook here. this friday,phie: we are looking at a mixed start. assessingperhaps are the virus responses which will come with funding pressures and we are seeing a resulting pickup in debt issuance not just from corporate's but also from sovereigns.
7:05 pm
we are learning that south korea is likely to issue government bonds to provide cash handouts to all households in the country. won of trillion government bond issuance would be needed to provide for that and today, we are going to get more clues on the health of corporate's in the region. we have a heavy earnings lineup, including from costco and p.m. odors in south korea as well as advantest and stantec in japan. holding onto a two again this morning. figures, head of the boj's policy meeting on monday during which the central bank is expected to discuss qe. flipping the board to check in on oil prices, wti gaining ground, holding about $16 a barrel, above 17, this after a two day rally. that is the most
7:06 pm
7:08 pm
karina: you are watching "daybreak asia." i am karina mitchell with the first word headlines. global virus cases continue to rise although there are more signs of easing and areas. ecb president christine lagarde told the virtual e.u. summit that they have done too little to stem the virus and what they have introduced has been too late. u.s. cases rose at the slowest pace in three weeks. spain reported the most infections and fatalities in a week. >> the public must understand that governments understandably
7:09 pm
building up in- societies and pressing on respective economies. this is not an exit. there is no path back to the new normal. slumpedthe e.u. economy this month as coronavirus's restrictions leave the single market struggling to stay afloat. private sector activity plunged in march, sharper than forecast since records began two decades ago. the economy is heading for a sharp and lengthy recession. meanwhile, the u.k. is seeing a price it may pay for the virus lockdown as output shrinks at the fastest pace in decades. the outlook for jobs is "horrendous. a quarter of the labor market is out of work. u.k. outputs contracted this month at the fastest pace in 20 years. a bloomberg economist says that
7:10 pm
may understate the damage. itsn has oblique view of economy, saying the prospects are the worst is the financial crisis. "pan says the situation is extremely severe and worsening rapidly" as it cuts forecasts and downgrades corporate earnings and jobs. the nikkei says the boj will discuss unlimited government bond purchases when it meets on monday. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. more than 4 million people filed for jobless benefits in the u.s. last week, bringing the total in the five-week virus pandemic to more than 26 million. the extraordinary rate of applications may continue for several more weeks. at dixonof advice
7:11 pm
advisory. we saw stocks really pretty volatile overnight. when you look at data like this, do the numbers seem to have passed the peak? you are talking about 26.5 million people in the u.s. out of a job in the past or so. in terms ofat mean expectations that as bad as this is, perhaps we have seen a leveling out for now? ofthere is a long list pretty jaw-dropping data just in the last 24 hours. service and manufacturing data around the globe, the u.s. unemployment you spoke about as well. we could keep listing them but the message i think markets are taking is that we will recover, and that has been confidence from the declining spread of the virus, the government support packages, and the central-bank action that are helping economies get through this. it is just a matter of how quickly we will get through this.
7:12 pm
haidi: in the meantime, are we still seeing pretty expensive pricing across equity markets, particularly as you consider it is an invented visibility -- inevitabilityan -- an inevitability that a recession will happen, but we are going to be in for a period of pain, particularly when it comes to the demise of the demand-side story, right? would you still be pretty highly selective in this pricing environment? emily: i think that is spot on. market pricing is on the optimistic side. it will be a rosy path out of this crisis. that is where investors do need to be quite careful because from a macro economic condition, we can look over the rise, and we can see a pickup in 2021. what we do know on the ground is
7:13 pm
that, you know, some companies will not make it through and i think the fact that, you know, many companies cannot provide financial guidance tells us something very important, they are not actually clear about how much impact they will have to be. that is where we need to be very ofscience -- conscious investors looking for high-quality companies and really trying to make sure, you know, from manageable levels of debt, good management, that that is -- that structure that the company has got in their balance them is going to give better chances that the company will be around for the long term because you might not see much upside in the next 12 or 18 months or whatever that window is where we are recovering, but over the long term, if you can get a good quality company at a discounted price, that could be very valuable, but you also need to be careful about buying on
7:14 pm
yields because we do think there is a high risk of downgrade and that some of those have yet to really work their way through in terms of pricing that is on offer, so there is a lot of things for investors to consider at that company specific level as well. shery: where would those high quality companies be? we continue to see u.s. stop volatility exceeding volatility in emerging stocks which sort of points to perhaps option traders at least being more optimistic about the prospects in the emerging markets than they are about here in the united states. emily: yes, we have probably got a little bit more of a cautious outlook on emerging markets. we do think a lot of the, i guess, impact is going to flow through to the emerging markets. right now, you know, because the market has picked up over these last year weeks, it is tough going. it is tough going to get in
7:15 pm
there and find these good quality companies that have not already been beat up in terms of prices. where we are looking at the moment is actually back in australia. for australian investors, that offered good opportunities there. there's a couple things going for it generally. the fiscal position of the government in australia is in a better position to be able to handle the massive stimulus. we have got a very good level of coordination between the government and the reserve bank, central-bank, and state government working together to really try and come out of this with policies that will help the economy go -- go well, sorry. therefore, we have drilled down a little bit, and we do think there are some opportunities still there. think it is we quite attractive pricing. prepared to invest for the long
7:16 pm
term for those companies. we think they are well structured for a recovery, and even on the defensive side, -- upside for investors, but you are right. it is very difficult because everybody is looking for those high quality companies and what we are seeing is quite a divergence. we are seeing a few doing very well, how authentec, and other sectors lagging behind -- health and tech, and other sectors lagging behind. shery: given they went through the coronavirus pandemic before anybody else around the world could, could we see more upside and opportunity in their stocks as well? emily: that's right. you are spot on. australia is being heavily reliant on china. china is our number one customer in terms of their ports, and we have seen that, you know, as china really leads the way out
7:17 pm
of the shutdown in terms of their policies, there has been a pickup in some of their industrial production and some of their members. what is a little bit concerning is that the consumer confidence and the propensity to spend has not quite picked back up to the levels we would like and that is understandable and that is also something we would expect to see in other global economies as they work their way out. reopen, economy is households, naturally, are going to want to deal a high level of confidence about their future income prospects before they go out and spend but they may also see some behavioral changes for consumers that actually mean they start saving more and spending less. if that continues in china and does not pick back up, it could actually be a slower pathway to recovery then we have perhaps hoped for and that could have some effects for australia, but at the moment, we still have
7:18 pm
that -- are hoping that recovery in china will continue and it will give opportunities for australian terms of exports. haidi: a permanent shift to consumer behavior is something we have been discussing at length. i am wondering what other structural changes might happen in the post pandemic period, and what opportunities, what interesting companies and stocks you think would take advantage this? nierida: on the first part of that question, yes, we do think there is perhaps a little bit more of an opportunity for structural reform, and i think, over the last few years, we have had the reserve bank calling for a structural reform because at a global level, the imf, it has been a regular complaint from their point of view that central banks are being relied on too much to do the heavy lifting
7:19 pm
around, you know, keeping economies going, and really wanting governments to do some of that big picture reform. now, what happened in australia over the last six weeks to seven weeks is we have actually had a aty cohesive government state and federal levels working together, and they have really shown a capacity to work across the traditional divisions to get things done, and there is some and that this momentum policy cooperation might actually continue at least until the deferred federal budget, which is now back into october 2020 and perhaps provide a platform for reform out of that. reducing red tape, tax reform, increasing productivity in the labor force. those things can make a big economic difference. where we talk about i guess from asus out point of view, and i think this has been talked about
7:20 pm
quite a lot, obviously, some of those existing trends. online retail, working from home, and that has been reflected already and what we have seen in the tech space as well. those are the sort of things we are watching and thinking about in terms of the impact from a longer-term economic perspective. shery: thank you. nierida cole joining us on the line and you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals and this is bloomberg. ♪
7:22 pm
7:23 pm
from the pandemic than developing nation peers. john authers says e.m. stocks me the virus rebound. he joins us on the line. usually, when we see a lot of uncertainty, fear, it is emerging markets that see this. what makes you think ems will benefit more coming out of this pandemic? the: history, i suppose, is one-word answer to that. generally speaking, you are quite right. they get it works on the way down. and partly because of that, they also do better on the way back up. now, you have also got to look at the fact that we have had very interesting differentiation between emerging markets in a way that we have not seen in previous selloffs. if you look at emerging market asia, china and the countries immediately around it, they have
7:24 pm
thanconsiderably better most of the developed world, and if you look at the rest of emerging markets, particularly eastern europe and latin america, they have done terribly. plainly at levels that are very near the floor at this point. so you do have to differentiate as well. the em as a whole was not as badly hit on the way down as it normally is this time, but that factorslies to specific that china and korea and taiwan believe so far to have done a better job of dealing with the virus then many of the other countries that came later. as you say, in this and every other circumstance, not all emerging markets are created equally. is that sort of even more the
7:25 pm
case in this situation where you have got an exogenous shocks, which perhaps means that history is not as useful in terms of saying -- telling us what will happen next, and also, each of these countries are handling the health care crisis and the economic shutdowns in very different ways. that is certainly true, but you have got to remember we are living in a world that has come to be dominated by passive itestments, that flowsbut you - tends to be fairly undiscerning in the way that they move. youagain, basically, when take a look at the flow data, china and the countries immediately around it have survived quite well and the rest of the emerging world has really been starved of capital in a
7:26 pm
dramatic way in the last few about, and we are talking the behavior of prices of securities. that's probably going to matter more than anything else. the other point that can be made about emerging markets as an asset class, when you look at it that way, is that they are diverse. you have got a range of different countries which have their own idiosyncratic problems and benefits, and that gives you kind of diversification within emerging markets. haidi: always a pleasure having you on with us. john authers, a senior editor and bloomberg opinion columnist making the case for nem rebound. let's get you a check of the latest news flash headlines. 77ing is set to slash
7:27 pm
dreamliner production in half. we are told that final details are still being discussed but the company is under increasing pressure from the virus led collapse in air travel on top of the grounding of the 737 max. dreamliner output began the year at 14 a month. emirates resuming passenger flights to limited destinations in europe, africa, and asia. for entry will be allowed to board. in-flight services will be modified to reduce contract -- contact. top indian carrier indigo is rolling back mandatory pay cuts, saying it will not cut salaries this month. the airline announced companywide reductions in march in line with the government's wishes. willeo says now, all staff
7:28 pm
7:30 pm
shery: we are waiting for those inflation numbers out of japan. for the month of march, coming in at a growth of 0.4%. which is a deceleration from the previous months, but in line with estimates when it comes to the national headline inflation numbers you on your, zero point 4%. in line with estimates. growth assame pace of the previous month. core inflation, excluding food and energy growth of 0.6%, as expected for the month of march.
7:31 pm
again, excluding fresh food, for on year, growth of 0.4% inflation. of course, we had expected easing of cpi prices given that we are seeing pressure from lower energy and we demand because of social distancing as we continue to see japan handle the ongoing coronavirus pandemic. joining us now from tokyo is wisdom tree japan ceo. great to have you with us. really not surprising when it comes to the cpi numbers out of japan. bang in line with estimates but still, a deceleration when it comes to the previous month for core prices. having said all of this, of course, we are still far away from that boj 2% inflation target. has the pandemic sort of lessened the significance of these inflation numbers, not to mention the oil crash, of course? jesper: you are absolutely
7:32 pm
right. 2% inflation target is almost of the last thing on the bank of japan's mind right now. everybody is working overtime to get those -- a new lending facility -- out to the small and medium-sized companies, so it is not about the inflation number. you know, it is all about the economic support for small companies. have heard local media reports in japan talk about the boj discussing unlimited government bond buying, replacing their current ¥80 trillion target. what are the implications of this given we already know they have done plenty? jesper: basically, you know, this is a wonderful gesture, you know, from the bank of japan, lifting the ¥8 trillion cap. japancally, the bank of is just targeting zero interest rates for the 10 year bond and whether that takes, you know, 20
7:33 pm
trillion yen or ¥70 trillion does not really matter. right now, there is a lot of pent-up demand amongst the japanese banks so funding the additional fiscal stimulus in japan is really not the problem. the more important thing about the bank of japan is the increased commercial paper and corporate bond buying that they are likely to be discussing on mondays board meeting. i want to throw up this chart, taking a look at where we are when it comes to boj holdings. 40% at this point. this chart shows pension funds hold another quarter, just about 3% held overseas, so you know, there's obviously no doom, gloom over the debt burden and the risks associated with that because, domestically, it is held at this point. i mean, does it make a difference at this point, given how extraordinary we are on the
7:34 pm
spectrum of extraordinary monetary policy that the boj can execute? asper: it does make difference in the sense that it confirms that they will do whatever it takes. you know, but as i said, the key point -- this is obviously true around the world -- the key know,is not so much, you refinancing the financial stability here. that is important, but much more important than the new element of this crisis is getting the support out to small and medium-sized companies. that is where the bank of japan, you know, has more work to do. we are expecting may be some more measures when it comes to corporate funding, but beyond that, they do not really have to do that much as long as equity markets and the yen remain pretty stable. exactly right.
7:35 pm
the key point, obviously, is the next leg of policy -- fiscal policy. prime minister abe and his team, you know, not just announcing, you know, a record sized budget, but actually delivering, and again, it is the nitty-gritty stuff. it is nice and also say that the small and medium-sized company is going to get government support. how many forms do you have to fill out? how quickly can the money get to you? because basically, japan, like everywhere else, small and medium-size companies are running out of time, meeting that may payroll will be very difficult for many companies. shery: we have seen japan of course have a very tight labor market for quite some time, but we continue to see this employment shock here in the united states with the coronavirus outbreak really intensifying, it seems, a second wave taking place across asia. what would be the labor market impact in japan? jesper: looks, the japanese
7:36 pm
labor market is very different, you know, much more rigid. than the hire and fire stuff that you have got in the united states in particular, so yes, the unemployment rate is expected, you know, to increase, currently around 2.25%. that is likely to peek out possibly even out around 3% to 3.5%, so nowhere near the 14% people are expecting in the united states. shery: i was in japan during the fukushima nuclear crisis and the expectation was perhaps we could see a more coherent policy coming out of politicians, that there would be a movement to really reform, but it did not necessarily happen. what can we expect this time around? can we see any progress on the third arrow of abenomics? jesper: i think the answer is yes, and you are actually seeing it in small and little things.
7:37 pm
let me give you a concrete example. the japanese doctors association tele-fused, you know, visitation so you could not dial and get diagnostics. now, they are allowed to do that. they have also allowed people to have recipes -- not recipes -- prescriptions, you know, that you do not have to pick them up by going to the hospital but you can actually get the prescription via fax machine, so that is huge progress in terms of doing away with some of the slightly opaque rules and regulations that japan has had. haidi: we are going to take this conversation back to where we started. itd of meh inflation numbers with the plans you have seen in oil, does this kill those
7:38 pm
inflation or reflation ambitions? does theuch of a dent psychology -- the kind of reflationary psychology, the consumer mindset, take with this pandemic related shutdown and cancellation of the olympic games -- postponement of the olympic games? jesper: it is pretty clear that, you know, the japanese consumer price index, in three or four months, is likely to be back at minus .75%. there is no question where things are going to be going. part of that obviously is good deflation in the sense that your energy bill, food bill, is going to be coming down, but you know, all of this inflation talk has now been superseded by the worry about jobs, income security, and quite frankly, just the outlook for the overall system. haidi: wisdom tree ceo jesper koll with us.
7:39 pm
appreciate your time as always. let's take a look if we are seeing much of the set up in these markets. pretty mixed expectations across the board. for this friday. focusing on japan, we are seeing little reaction to the cpi figures from the country event how the focus is just on how policymakers will provide credit using targeted measures companies, so this morning, we are seeing me to futures in singapore open lower while u.s. futures are under pressure as well and the yen holding steady, trading at 107.62 after retreating overnight. investors assess the impact of bond buying by the boj. mizuho chief market economist says the current ¥80 trillion target has long lost substance. unlimited qe, the actual effect of that measure, would be a marginal one. checking in on jgb's, they settled higher, so we are expecting a gain for adjusting
7:40 pm
7:42 pm
karina: this is "daybreak asia." i am karina mitchell with the first word headlines. the house of representatives has passed a 480 $4 billion coronavirus aid package even with lawmakers at odds over the next rescue bill. the debates saw members wearing masks and entering the chamber under strict health precautions. president trump is expected to -- to sign the bill. meanwhile, malaysia is extending its virus locked down by another two weeks to may 12 while using restrictions on limited travel. the government says students and workers living in dormitories will be allowed to go home but further nationwide curbs may still be imposed. new infection cases -- malaysia introduced strict limits on personal and business activity on march 18.
7:43 pm
oil continues its recovery from dramatic selloffs this week although the global oversupply still sees huge amounts of crude looking for a home. futures gained 20% in new york with u.s. production now at its lowest since july. some opec nations have instigated output curves. it is rolling back production while algeria has said something will be reduced immediately. the coronavirus has hit hollywood. phone production collapsed for more than 1000 in february 2 zero last month. the l.a. film office cannot say when the cameras may start rolling again. shutdown is crippling the local economy where one in five jobs is tied to the entertainment industry. more than 40% of scripted tv shows are usually shot in los angeles. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery. shery: thank you.
7:44 pm
the performance of the s&p 500 is becoming even more dependent on its three most valuable companies. microsoft, apple, and amazon have increased their weights within the index. 3.3 percentage points for the year so far. by itself, the increase exceeded the weight of three of the s&p's 11 main industry groups. joining us now is the securities empty of equity research. great to have you with us. during thist pandemic, so much uncertainty out there, that these are being seen as a safety call. it is viewed as a safety blanket in terms of this environment. i think part of it is getting stronger. if you look at the secular trend, you look at amazon, e-commerce as well as cloud, a massive secular trend that has given them -- as well as microsoft. that is another one. i think when you look at it
7:45 pm
they had microsoft in there. the strong are getting stronger, and it is a bifurcated market because while they are seeing stocks sold out, it will be earnings for the ages and not in a good way. it will be an ugly tech earnings season over the next three weeks and i think investors are bracing themselves for it. shery: especially with apple because it seems to be hit from the supply chain side of things and demand as well. apple is the >> eye of the storm, just delaying production. ultimately, we believe the 5g iphone 12 gets -- november and december time frame. are -- 15% cut.
7:46 pm
this is another one where investors, they are looking through the next quarter on the others of the dark valley. are forhow evaluations the 2021 numbers and more options for the cycle. that is why, with apple, rather focus on what cook says about the 5g cycle as well as just how bad demand is, and clearly, we think these 15% cuts to units. haidi: out of the other side of this, which of the disruptors in tech will get started themselves? we have talked about whether there was a long-term future for companies like we work and. and someer and lift -- serious question marks over uber and lyft. some of these things will be in place for a long time to come. this,: the other side of
7:47 pm
we talk about the strength. on the other side, the gig economy plays. they are really ones where the business model is going to be altered on the other side of the break. at uber and lyft, and ridesharing, will customers be comfortable getting into cars , given the covid-19 pandemic? i think you will see consolidation on the ridesharing side, private companies that potentially could have gone public now may be getting consolidated, so i think that is where the gig economy, that is where this significant gut punch is to those business models which might be altered going forward. how much of a hit does r&d take going up the other side of this? there's been some criticism or just some commentary on the fact
7:48 pm
that uber has kind of missed the window of opportunity for investing and progressing autonomous driving while google has gotten ahead and now, it is probably not likely that it will ever be able to cut. daniel: that is a great question. when you look at waymo and everything that it has done, they are clearly in the driver's seat when it comes to autonomous. more and more pressure on the business model in terms of some of the prospects of possibility for r&d and you will need to see cuts. uber is,look where that is a big initiative, but it comes right down to the whiteboard. there's five things uber is looking at. they will have to cut two or three of them given what you are seeing with topline growth. when we cut our numbers by 50% to uber this year, ridesharing. it is just dramatic cuts and i think that will be something in
7:49 pm
the coming weeks investors really focused on uber and lyft just to get some more granularity on the comfort of what that trajectory looks like. haidi: when it comes to amazon, we have seen significant demand given the need for supplies and essential products, but at the same time, it seems we are seeing more pushback against this giant. france shutting down their warehouses because of basic terms over their employees. is there going to be a fundamental shift after this pandemic is over about how regulated amazon gets? iniel: i think for right now, mean, amazon is clearly -- it is really becoming a core archery both in the u.s. as well as abroad. this, as the of strong get stronger, it does further highlight the regulatory environment because it is really
7:50 pm
starting to show a bifurcation. when you look at amazon, for a market share perspective, they gain more and more share. it puts them further in the right spotlight. it is a balancing act, as you are sheen, not just in france, but across other areas with warehouses and especially as they are looking to get further into logistics, as many companies are struggling today. amazon is finding success, but that is something that, you know, could have another side of it as we go into the coming years. covered tesla, we as well. what other the prospects for this company? we have seen car sales and car demand just plummet. cape,: musk and his red yet again, continue to be what ulls are focused on. in the march quarter, lowered expectations. investors are bracing for just a
7:51 pm
disastrous june, given the shutdown and the global pandemic, but they are looking on the others. that is why stock continues to move higher on china, on the prospects, as well as clean demand. there is the near term versus the long-term. are winninghe bulls and i don't see anything going into earnings that will stop that train as they continue to look on the others for the court play. -- core play. , great toiel ives have you, as always. alright, well, we do have more on tech in terms of covid, in the time of covid. later on, we are joined by the capital founding partner at 9:40 a.m. in hong kong. just got a bit more japan data crossing the bloomberg for you. producer price index for services in the month of march,
7:52 pm
the year on year figure coming in, just missing expectations of 1.6%, looking at a gain of 1.7 percent, moderating from february's level of 2.1% on the back of those cpi numbers that were out a little bit earlier this hour -- last hour, pretty much bang on expectations. lots more to come. this is bloomberg. ♪
7:54 pm
shery: let's get you a quick check of the latest business flash headlines paired alibaba is tightening control of sales of protective virus equipment on its platform amid claims some sellers are hiking prices. it says only invited members will be allowed to sell ppe on alibaba.com and anyone who tries to dodge the rules and make exaggerated claims will be so far to unsubstantiated penalties. amazon has also been accused of letting sellers gouge prices. china's -- has led to a fivefold increase in asian loan loss provisions for credit suisse. this was bank provided $100 million in marginal loans before accounting for fraud allegations that collapsed in the stock. even with these losses, credit suisse still announced a 38% rise in pretax -- the backlash against zoom is widening with top companies
7:55 pm
advising against its conferencing app. sources say daimler ericsson and bank of america are among those banning staff from using zoom because of security concerns. they join tesla and government agencies in asia who have deemed zoom to be unsafe. zoom shares have surged in the work from home era and it now claims 300 million daily users. haidi: we are setting up for a mixed open going into this friday. final session of the week, new zealand seeing modest upside, just up .3%, rallying for a second day. we spoke with the finance minister earlier on who was fairly optimistic going into the partial reopening of the economy. at gets underway as of monday night after this knocked down that they have had that has taken the economy to a standstill. futures in australia were looking pretty mixed across the rest of the region.
7:56 pm
futures in australia were looking pretty positive but now kind of looking fairly flat at this point. we are also looking at a little bit of upside when it comes to the start of trading in hong kong, this after u.s. stocks coming under pressure again amidst the volatile session after jobless claims again. 26.5 million jobless claims over the last five weeks in the u.s. as well as news that a great deal of the hope attached to one coronavirus therapeutic had come into -- we had some news of some poor testing data. coming up on the next hour of "daybreak asia," we will be joined up next friday a great guest in the next hour. we will be joined by the head of investment -- move out of her. he will be with us to talk about the impact of china halting these applications and new etf's. what that means for foreign investors. sydney,et open in tokyo, and seoul, up next. we will be looking for that first response to what was a
7:57 pm
8:00 pm
8:01 pm
after a wild week. traders are still concerned about the swelling global glut and the lack of storage. relaxing virusrd lockdowns. told it is too little, too late. straight to the market action with sydney and tokyo coming online. sophie kamaruddin. sophie: the movement in tokyo. the nikkei 225 lower. this is the economic outlook growing dimmer. place at then boj's upcoming policy decision. we did get data showing inflation slowing again in japan with a collapse in oil adding to the drag. the reaction seen in the end. -- yen. we are still watching the
8:02 pm
korea open as well. take a look at the kospi which is down 4/10 of 1%. we have seen korea first quarter gdp numbers drop the most since 2008. we are still watching out for more earnings out of south korea including those of cosco and kia motors. the asx 200 holding steady as we see the aussie dollar supported by the recovery we are seeing in commodity prices. kiwi stocks gain ground for a second session. the kiwi dollar also strengthening after we saw a rising crude prices fueling a bounce of dollar. it is the last working day before new zealand eases on its lockdown. u.s. features under pressure on the moment -- at the moment. a leading antiviral drug by gilead performed poorly in the first google test. -- clinical test.
8:03 pm
let's get more on what to expect from the markets. luke oliver is head of index investing at dws investment group. we have seen this massive volatility in oil prices. for the first time, crude going below zero on monday. rebounding at the moment. this has triggered masses -- massive volatility in oil etf's. what is the point of etf's if you see much volatility? what does the future hold for these exchange traded funds when it comes to the price of oil? sophie: -- luke: thank you for having me on. it has been interesting watching the etf's and seeing negative oil prices is something quite shocking for most people. negative anding try to wrap that around and exchange traded fund is quite challenging. in most cases, almost all the etf's that tract oil had already
8:04 pm
rolled into later futures contracts. they were not negative. ,e have also seen etf's considering they are a new technology and a very nimble technology in fund investing, it adapted already. the biggest will etf in the u.s. has already converted shares into being flexible and more active. they are punching out the number of contacts they hold into the future. they are not as susceptible. that is just a technical issue around the fact that there is so much oil being produced and not enough demand for it. those futures contracts expiring have led to a glut of oil and not enough storage for it. that has pushed the price negative. shery: we are getting breaking news that the philippine president has extended the lockdown in the capital region to may 15.
8:05 pm
the president of the philippines extending the lockdown on the capital region through may 15. as we continue to see this second wave of infections across asia, not to mention rising infection cases in europe as well, so much uncertainty in the markets right now. what are you watching in order to find opportunities as we continue to see volatility all across? one, as far as emerging markets are concerned, we prefer the asian emerging markets. even though there are concerns about second and third waves, those asian emerging markets have already gone through what the latin america and other emerging markets have yet to go sue. -- go through. the second is the u.s. high-yield corporate debt. i really fascinating place to look at. spreads bounce
8:06 pm
more than 1000 basis points, high-yield bonds outperformed stocks over the following telephone -- 12 months. towardseople moving high-yield etf's in the u.s. to get exposure. the federal reserve to invest in high-yield etf's. that makes high-yield very interesting to us. this might be more controversial. looking at china. we think that china remains a very strong opportunity for investments. it has outperformed last year and year to date despite the turmoil we've had. china has been a great diversifier in portfolios. it has performed quite well. there is something quite interesting about china and the fact that if the rest of the world in some way -- if china becomes more isolated, its composition of gdp has become more consumption focused.
8:07 pm
it makes china interesting. that is somewhat newterintuitive given the cycles around coronavirus and so on area -- so on. question have a viewer wanting to know where you see the long-term prospects for oil. andare here to talk etf's perhaps give more context to what the implications are for inflation and for market indexes in particular. do you have a response to that? luke: yeah. certainly, it has been a few years since iran and oil fund. mostly on, i focused high-yield and international equities. having low oil prices definitely low -- inflation will stay or a love letter has been out for some time. interest rates will stay low.
8:08 pm
when i think about the u.s. economy, it is not as susceptible to oil prices as it was tenure to go. it's not as much of a hurdle. i mentioned high-yield. high-yield is often affected by oil prices. a lot of high-yield issue with our. -- issuers are. we have seen the oil companies recently falling to investment grade. we are seeing an improved quality of oil issuer in high-yield space. it's very mixed. i would not take it as a one , cheap oil is a terrible thing for all sectors. as far as how long oil will stay down, that will be interesting. a lot of that will play into the dual effect here. will we get the economies back open and back to consuming? is russia and saudi going to resolve their issue?
8:09 pm
shery: how does the fed backstop and increasing conversations about direct debt monetization for other central banks around the world play into your calls and optimism about the opportunities within high-yield? high-yield, the fact that we are seeing the fed step , thed look at high-yield fallen angels we call them, high-yield, recently out of investment-grade. there's an awful lot of jobs behind the firms that issue that debt. that certainly is very helpful. think one of the things that is very interesting at the moment that nobody is talking fort, this is not quite asian investors, the currencies
8:10 pm
and how it affects currencies. there has been an increase in currency volatility. there's also been an increase in the correlations between equities and currencies. when that happens, you often get an increase in risk for holding foreign equity investments. that is something that not enough people are talking about. we favor the idea of hedging currency. you want to be invested in international equities and diversification. when you do that, you need to be currency hedged while doing so. looking at the difference between interest rates and hearing most countries are close if not at zero, there's not much of a cost to doing that currency hedge. we think taking that risk off of the table is important. i don't think enough people are talking about currency exposure. haidi: luke oliver, thank you so much for joining us. we are taking a look at the 10
8:11 pm
year jgb yield below zero with the bank of japan qe. we have that meeting next week looking at further measures from the bank of japan and the boj expected to buy in the superlong and day. we are looking at the japanese government bond, the tenure yield down the most in a month in terms of percentage point, basis points. one of the indicators that we are watching. will beead, kathy jones joining us next. she's the swap center for financial research and will be sharing her outlook for the sector. coming up next, greg robinson spoke with us about opening up the borders, rolling out government support ahead of the reopening of the economy next week. our exclusive interview is just ahead. this is bloomberg. ♪
8:14 pm
karina: the house of representatives has overwhelmingly passed a $484 billion coronavirus a package even with lawmakers at october the next bill. the debate from members wearing masks and entering the chamber under precautions. president trump is expected to sign the bill. seeing the price it may pay for the lockdown. current and former bank of england policymakers say the outlook for jobs is hernandez -- karen this. output contract this month. bloomberg economics say that may understate the damage. australia has called on the countries to and wet wildlife markets over concerns they pose a threat to human health and
8:15 pm
agriculture. australia used a virtual meeting to push for changes but was careful not to think about china which is australia's biggest trading partner. outbreak ofown covid-19 happened at a wet market. >> we have to act as a global community. see if we can mitigate this risk. if they can't, we have to understand how we isolate them from a traditional wet market. that is reporting, particularly in developing nations, in providing security -- food security. karina: global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell's. this is bloomberg. shery: japan is stepping up efforts to contain the coronavirus. authorities are telling people to stay at home during an upcoming holiday with the goal to lift its lockdown in early may. let's get the latest from yvonne
8:16 pm
man. will this work? yvonne: it's a tall order. we heard from the tokyo governor proposing the idea where companies add vacation days and turn this holiday into a 12 daybreak. they are hoping to do so so they can let the state emergency order. lifting the holiday -- lockdown during the holiday could be a risk. it's the most popular time to travel where families take extra time off to travel abroad. japan doesn't have any penalties for people traveling unnecessarily. we've seen a couple warm days where people did venture out as well. there's a risk of lifting the state of emergency during this crucial time. they have seen a decline in new infections. given the limiting -- limited testing out there, the extent of the virus is unclear.
8:17 pm
saysrime minister himself there's a goal of reducing person-to-person interactions by 80%. limitg for residents to grocery store shopping to once every three days. it will be tough to lift that state of emergency order on may 6. we got news that the philippines is extending its lockdown. what do we know? they are extending the lockdown in the capital region until may 15 now. the death toll in the philippines from covid-19 has surged nearly fivefold since the start of the month to 460 through -- 462 fatalities. you see the thinking behind why they had to extend this. the government is now also trying to contain the virus but also dealing with the medical
8:18 pm
brain drain weighing on the health care industry as well. trying to keep nurses at home instead of exporting them around the world. we heard from other countries like malaysia extending its lockdown until may 12. also easing some restrictions. they are allowing 10,000 students living in dorms and those away from home will now be allowed to travel during the lockdown. the government has relaxed some restrictions and construction and machinery but with a reduced workforce. the government not ruling out a further extension for now. yvonne man with the latest. we have more coming through from the philippines. the philippines is running out of funds. he announces the extension of the lot down -- lockdown of the
8:19 pm
capital until may 6. the majority of economic output to stem the spread of the coronavirus. this two-week expansion -- restrictions. turning to new zealand. the finance minister says the government there will be looking to other industries to pick up the slack in the economy as a prolonged border closure forces tourism businesses to the brink of collapse. here's our exclusive interview. >> we've still got work to do. certainly, the two countries, when you look around the world, have done better than most in from newtheir -- zealand's perspective, most of the cases we have had have come in from outside. we have strong order restrictions in place. we will have those in place for some time to come.
8:20 pm
clearly, we would like to work towards a time when we do reopen the borders in australia. wet would be something that would like to keep working on and looking at. in order to make sure we have on top of this virus, those restrictions are going to be in place for a significant time. >> what would that do to your tourism industry and the rest of the economy? >> clearly, our tourism industry is going to be significantly affected. five-10% of gdp in new zealand. it has been growing strongly over the last few years. we are already seeing some visitors who are either freezing their operations or scaling them down significantly. it's one of the sectors that we are ferry -- very focused on. involving a plan
8:21 pm
redeployment of people who work in those sectors and support for businesses to change their focus as well. it's an example of where new zealand will need to be looking to other sectors to pick up the slack. our primary industries are still going very well. we are a great supplier of food to the world. people still need their food. we also have to look at how we fill the gap with other areas of work, particularly around processing and new zealand and manufacturing and so on. it could pick up some of the slot for -- slack for tourism. that sector will be significantly affected for the next year or so. 20% precrisiser levels. what is the appetite to push data? -- that up? could go up to 50%? >> this is one of the things that new zealand is well-positioned.
8:22 pm
it does put us in a position where we can borrow more and even that out. we will. be exact goal we reach will there when we get to that budget. it will continue to be at the very low end of the national comparisons. new zealand is a robust economy. we have kept it low because we are susceptible to the impacts of global economic shocks and natural disasters. this for aere, we do rainy day. it is pouring outside. we are in a position to use that. we will continue to be careful. most countries around the world
8:23 pm
have substantial support packages already. there will be more to come. >> look at the size of the government sort be? your treasury has released scenarios from 20 billion kiwi dollars to 40 billion. will it be at least 20 billion? >> those are just scenarios that the treasury developed as indicative examples of what could happen. the final details of that will be in our budget. we are in a strong position going into this in terms of new zealand's debt levels. it means we are able to facilitate the kind of fiscal policy that is needed. theill make sure that targets are towards the sectors that need us, that they continue to support businesses and .ouseholds to respond
8:24 pm
supportingitted to our people through this situation. the final details will be put out when it's time. that was our exclusive interview with the new zealand finance minister. still ahead, how hong kong's extension of social distancing measures is hitting the s&p. simon long joins us later. this is bloomberg.
8:26 pm
8:27 pm
the next iphone with the first to be much faster than current designs. .he plan is codenamed calamari amtrak hopes to break even for the first time in its history. it has been derailed by the coronavirus. numbers slumping by 95%. unexpected loss of $700 million. amtrak has cut services by half nationwide with some routes being suspended. saudi aramco is said to have told it ise are working with jpmorgan on a deal which could be worth several billion dollars. start a formalto sales process. it may wait until the oil market
8:28 pm
8:29 pm
beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. ♪
8:30 pm
haidi: we are getting some conflicting information coming out when it comes to the philippines. minutes from -- a few ago that the country was running out of funds. the finance secretary saying that philippines has sufficient cash at this point. trying to get clarity on that. this is not the first time he has made that statement. in the past, he has talked about the possibility of selling off assets to fund the government closure. we've heard that the shutdown of
8:31 pm
the capital and the nearby area will be extended into the middle of night -- may. sophie kamaruddin in hong kong. we are seeing asian stocks losing ground. industrials leading declines. energy and health care among the few bright spots in the region. in tokyo, the nikkei 225 resuming losses and set to halt a two week game. -- game. korean shares edging slightly higher on a reported may get the national support from stateline lenders. sayers --tralian let's check in on the end. -- yen. the currency could face headwinds. zero withb's below
8:32 pm
the boj expected to join the kiwi cup as public debt surges around the world with government borrowing surpassing what we saw during the global financial crisis. australia clocking a record month of issuance. forrba not scheduled to buy the first time since it began its qe program. aussie bonds heading lower ahead of that. we will be watching south korean notes for the finance ministry, ready it -- to issue a universal cash handout. a bond offer to support small businesses in south korea. as by is driven debt supply is ramping up, south korean bonds may emerge as the safest bet while india and indonesia may be looking more vulnerable in light of their current account deficits. supply on that set surge, countries hard hurt by the pandemic indeed to seek refuge in the bond market. investors have been more than
8:33 pm
willing to throw them billions of dollars in lifelines. the gap seeking new funding and a busy day for corporate debt sales. , great to have you with us. what's the risk that some of this buying may be indiscriminate? as soon as the federal reserve announced that they would buy high-yield bonds, possibly even high-yield etf's, a rush of money into the market. on the assumption, by with the fed is buying. it's clear that the fed is only buying a small sliver of the high-yield market. i'm afraid that the rush of money in may not be looking carefully at the fact that we are still going to see default and downgrades. cycle inhe default this cycle will see a default rate over 10% which is typical
8:34 pm
of a recession. my concern is that it rushed too far, too fast. haidi: what about the fact that european appetite to be rising? the ecb is accepting junk bonds as collateral. i think this central banks are doing all that they can. since thereal move was not that much weight in corporate debt for them to absorb. there are a lot of fallen angels in europe and the united states. i think they have to make room for that in their overall plan to support the economy. aren'tinvestors who picking carefully which bonds they are buying may regret brushing and too fast. -- rushing in to fast. how much structural dislocation are we setting up for in terms of the financial system in terms of debt markets once we are out the other side?
8:35 pm
increasingly, policymakers doing whatever it takes in terms of extraordinary monetary measures. it is so hard to know when this is over. we are all trying to figure out what happens on the other side of it. we really don't know when that happens. the morer this goes, we are going to see structurally that the central banks are owners of a huge proportion of the market. if we thinkaid, about the financial crisis, the federal reserve really did take its time to start unwinding the balance sheet and going back to something that resembled a normal policy. that's probably the order of things that we will see when this is over. timewill hang on for some to a very aggressive policy and try to dial it back very slowly. that's going to set us up for several years of dislocation in
8:36 pm
this market. haidi: in terms of the oil market, does that tell you that there are certain sovereigns that you would be avoiding at this point, until we see a meaningful recovery? shery: -- kathy: yeah, in the sovereign markets, we have been fairly cautious on any of the commodity producers. ,bviously, this is a crisis combined with the oil shock, has really caused currencies to decline. andave been avoiding canada the norwegian krone and things like that. say there, i would are good developed markets. at this stage, we will see more currency weakness in her. -- weakness there. , a good portion
8:37 pm
of the high-yield market in the united states and increasingly elsewhere is an energy. it is combining between sovereigns and the credit markets where the oil shock is having a big impact on a big portion of the market. downgraded innds currencies continuing to decline. haidi: what about different regions? we've heard more optimism about potential opportunity and emerging-market high-yield. marketmerging hike -- high-yield. kathy: we are not crazy about it right now. , ii wanted an opportunity would look at italian btp's. looking for the spread to narrow versus germany. in the emerging markets, there is differences between various countries. my biggest concern there is the big buildup of dollar denominated debt amongst the issuers and amongst the corporations.
8:38 pm
with the dollar continuing to rise, that fuels more demand for dollars to service that debt. obviously, that can get very expensive. the cost of that debt service is rising. depending on which emerging-market you are talking about, country, some are really not well-positioned. they don't have the reserves. it is really having an impact on their exports or their main production. i would be a little cautious about emerging markets. i don't think their risk reward is attractive yet. shery: what are some of the risks you are seeing when it comes to the overall economy and your investing strategies? kathy: the biggest risk is that we have a double-dip recession. that we come out of this and there's a lot of optimism and maybe risk assets at -- rally. and then we have to go through this process again because potentially the virus comes back
8:39 pm
and we have to shut down again or go into rolling lockdowns. and this carries on for a long time. that's a scenario where it gets really difficult for the central banks to do a lot more than keeping rates near zero and expanding their balance sheets. a gets more difficult for governments to continue to expand fiscal policy. we could see a rolling recession for a long time. for me, that's the negative scenario. i think we are dealing well now with the immediate shock. central banks and fiscal policy expansion is really getting aggressive in dealing with it. this lasts a long time or we get a cycle of this that comes back, that will be very difficult to emerge from. according to new research
8:40 pm
from wells fargo, over 10% of u.s. collateralized loan obligations have failed their collateral test. in that case, are you seeing rising risk in this part of the market? kathy: we are. that was going to be inevitable, i think, given the underwriting standards that we have had over the last several years and the search for yields. we have really got a lot of covenant like paper out there. surprising as we get into a very difficult economic environment that we are going to see some failure there. , i thinkverything else the approach you need to take is up in quality and everything, whether it is corporate bonds or the sovereign space. you want to stay up in quality in terms of credit quality because this is going to be a difficult cycle for all parts of the market.
8:41 pm
haidi: great to have you with us. chief fixed income strategist at the charles schwab center for financial research. great to have you. we are getting more clarifications when it comes to the philippines. comments from a few minutes earlier, he was referring specifically to virus funds. we had the finance secretary coming out and clarifying that he was not -- funding was not an issue at this point. we will get a more detail on this. philippines planning a loan program for small businesses. we see that extension of that lockdown for the capital as well as nearby regions through the middle of may. we're getting numbers now from the coronavirus cases out of china. china reporting six additional coronavirus cases on april 23.
8:42 pm
8:44 pm
karina: first word headlines. global virus cases continue to rise. more signs of easing in some areas. world leaders are being criticized. the ecb president told a virtual eu summit that leaders have done too much to stem the virus. u.s. cases rose at the slowest pace in three weeks. spain reported the most infections in a week. understandic must that governments will try to release the steam building up in society. this is not an exit. there is no fastback the new normal. economy slumped as coronavirus restrictions hammer companies and jobs and leave the single market struggling to stay afloat. an estimate of private sector
8:45 pm
march,y plunged in sharper than forecasted. the lowest pmi readings since records began. the data suggests the economy is heading for a sharp and lengthy recession. of theas a bleak view virus. the prospects are worse than the financial crisis. they say the situation is extreme is severe and worsening rapidly as it cuts forecast for a second straight month. boj will discuss unlimited government bond purchases when it meets on monday. oil continues its recovery from dramatic selloff this week. the global oversupply still sees huge amounts of crude looking for a home. u.s. production now at its lowest level since july. some opec nations have instigated output curves. kuwait says it is slowing production. algeria has said pumping will be
8:46 pm
reduced immediately. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: china's top two insurance companies saw profits plunge in the first quarter as the coronavirus hit sales and investments. china life posted a 34% drop in march. china's largest insurer by market fall you says profits fell 43%. let's bring in tom mackenzie in beijing. give us the top lines from these results. china light saw their profits hit by a drop in sales. it is not a big surprise. the impact on investments and low interest rates as well. to 3.7 billion u.s. dollars from around 6.5 billion the year before.
8:47 pm
new business fell 24%. investment income fell 93%. very low interest rates. operating profit still came in in the positives. that rose more than 5%. profits life, they saw fall 34%. that was in line with estimates. here's one thing to take away for china life. new business actually in terms of new bilious -- business value rose more than 8%. cftc and crude expecting a tick up in the shares when trading begins in one hour. that's a silver lining for china.
8:48 pm
haidi: does that mean there's expectations of a recovery? tom: certainly. when you look to consultants, they see that v-shaped recovery. they say they have been resilient in china. they do see a recovery in premium. that is on sales they have seen in march. significant demand as well. their are taking ambitions more seriously on the back of the virus. they accept the sector to clock moderate growth for the major of the year. over at bloomberg intelligence, they see this china life new business growth being pretty positive. 10% this year. even as net income is queasy by low bond deals. the equity market, the interest rate environment will prove a drag.
8:49 pm
there was opportunity here for the insurers. shery: our bloomberg markets: curve there in beijing with the latest on those chinese insurance. we are getting some breaking lines when it comes to the u.s. department store jcpenney. in advanced talks for bankruptcy financing. that's according to a report from the dow jones. we have seen increasing pressure on the u.s. retailers given the shutdown that we are seeing across large parts of the economy. talksey is an advanced with a group of lenders. the troubled retailer is about to succumb to the economic collapse caused by the pandemic. are looking at discussions being held with the likes of wells fargo, bank of america, jp morgan chase for a loan are loos being held with the likes of wells that would keep jcpenney's operations funded during a court supervised bankruptcy.
8:50 pm
the loan package that we are talking about could total around 800 million dollars to a billion dollars. some of that money potentially including existing debt. that is likely to be syndicated as well. other lenders could get involved. we could be looking at a bankruptcy filing for jcpenney in the next few weeks. the company entered into that 30 day grace period after you losing and interest payment to bondholders. lots more to come. this is bloomberg. ♪
8:52 pm
shery: global airlines are feeling the pain of coronavirus related shutdowns. raiseairlines seeking to $3 billion in loans and bonds. i spoke to the chairman and ceo of the international airport association. the cashe simulated burn for the second quarter of 2020. that's around 61 billion u.s. dollars. you must add to that the refund of on flown tickets that was only for the second quarter. that should be around 35 billion u.s. dollars. we are burning cash terribly. it is terrible for the industry. that's the reason why we need cash injections. that's the reason why many cash fromre raising
8:53 pm
various instruments. seen now historically low oil prices. will this help at all? >> yes. it is helpful. soul -- lowerthe oil price will have a significant impact. not immediately because many of us are hedged for the next two years. it is a significant relief anyway. to governmentes age, we have seen virgin australia not getting help from the us trillion government. -- australian government. will we see collapses of airlines like we saw in virgin australia? what is your initial reaction to this? >> first of all, we have advocated to almost 93 governments to put together packages to help the industry
8:54 pm
and to help everybody. of course, in a fair manner. always, for us, very painful and sad to see one of our members is collapsing. if these packages not -- are not in cemented quickly, we need cash to flow when our balance sheets, we could see more collapse and bankruptcies. the race for the industry to shrink is significant. in fact, we could argue that while this is the industry hit first by covid-19, it may recover last. it is easy to imagine a scenario where at -- air travel is the last thing to return to normal. are you preparing for a very protect -- protracted period
8:55 pm
where normal is a long way off? >> i would have to say that we pessimistic about the length of the crisis. a veryalready prepared strong restart plan. on the other hand, we think that a strong airline industry is necessary to have a strong and fast recovery. we already started plans. we're discussing that with governments. we will be ready as soon as the government will lift restrictions on travel and the closure on borders. have goodll have to profits to guarantee that flying is still nice
8:56 pm
transportation. the passengers will be with from their countries in the world. shery: that was the ceo there speaking earlier to us. take a quick look at our markets trading right now in the friday session. a pretty downward start for asian equities. sentiment pretty mixed. mixed results in terms of bad news on the front of therapeutics and treatment for the coronavirus. further bad news when it comes to those jobless claims numbers as well. we are seeing the nikkei 225 close by 1%. pretty mediocre infection numbers as well. in australia, we are seeing as increasinge talk about a partial lifting of some of these restrictions.
8:57 pm
8:59 pm
it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected. even that that pet-camera thingy. [ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ]
9:00 pm
59 Views
IN COLLECTIONS
Bloomberg TV Television Archive Television Archive News Search ServiceUploaded by TV Archive on